Retirement Plan Limits, Wage Base Announced for 2014
On Oct. 31, 2013, the Internal Revenue Service (IRS) announced the various limits applicable to retirement plan contributions for 2014.
The table below reflects the 457 and 401 plan contribution limitations for 2014, which remain unchanged for 457 and 401(k) plans. The limit for 401(a) plans will increase by $1,000 to $52,000.
|457 Deferred Compensation Plan Contribution Limits|
|Annual Deferral Limit||$17,500|
|Age 50 Catch-Up Limit||$5,500|
|Pre-Retirement Catch-Up Limit||$17,500|
|401 Plan Contribution Limits|
|401(a) Defined Contribution Plans - Annual Additions||$52,000|
|401(k) Elective Deferral Limit||$17,500|
|401(k) Age 50 Catch-Up Limit||$5,500|
The contribution limit for individual retirement accounts (IRAs) remains the same at $5,500 in 2014. In addition, employees who are age 50 or older are eligible to contribute an additional $1,000, for a total of $6,500.
Details on the new limits are available on our website at www.icmarc.org/contributionlimits.
2014 Social Security Wage Base
Also, the Social Security Administration announced 2014 Social Security wage base cost of living adjustments:
- Social Security (OASDI) 2014 wage base: $117,000
- Maximum OASDI tax: $7,254 (6.2% of $117,000)
- Medicare (HI) 2014 wage base: No Limit
Note: If you are not participating in the Social Security system, OASDI information will not apply to your employees.
Information on the 2014 limits will be in the quarterly newsletter for participants. You may view the IRS website for more details.